RBC plans 15.75% reverse convertibles linked to Silver Wheaton

By Angela McDaniels

Tacoma, Wash., Sept. 18 - Royal Bank of Canada plans to price reverse convertible notes due March 28, 2014 linked to the common stock of Silver Wheaton Corp., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will carry an annualized coupon of 15.75%. Interest will be payable monthly.

The payout at maturity will be par unless Silver Wheaton stock falls below the barrier price, 75% of the initial share price, during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Silver Wheaton shares equal to $1,000 divided by the initial share price or, at RBC's option, a cash amount equal to the value of those shares.

RBC Capital Markets LLC is the agent.

The notes are expected to price Sept. 26 and settle Sept. 30.

The Cusip number is 78010UFA0.

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